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Committee backs bill to allow municipalities limited lien authority for unpaid utility-related fees
Summary
The committee recommended as a committee bill draft legislation that would let municipalities place liens on property for unpaid sewer, stormwater and certain water fees, using a mechanism similar to that already used by special service districts; the motion passed unanimously.
The Political Subdivisions Interim Committee unanimously recommended as a committee bill draft legislation that would allow municipalities to place liens on property for unpaid utility-adjacent fees, limited to sewer, stormwater infrastructure and certain water charges.
Representative Cutler (bill sponsor) told the committee the proposal revisits a measure passed through committee last session but not prioritized for final floor action. He said special service districts already use a similar mechanism, which staff and stakeholders say has a high collection rate for small delinquent utility accounts. "There are people that don't pay their bills. And when someone doesn't pay their bills, other taxpayers have to cover that cost," he said.
Cameron Dale, executive director of the League/utility organization, and a representative of the Utah Association of Special Districts supported the measure as a narrowly tailored tool for local governments. Dale said the average delinquent account addressed by special service district liens is about "$185," and that using a lien avoids the practical and safety problems of disconnecting water service at the meter. LeGrand (representing the Association of Special Districts) said his organization was neutral and "happy with it moving forward." Ruth Ann (committee staff) clarified the intended statutory definition of "utility-adjacent services" as maintenance, construction and improvement of stormwater infrastructure; the sponsor agreed to tighten the language if needed.
The committee then voted to make the draft a committee bill. Representative Colford moved that the committee adopt the draft as a committee bill; the motion carried unanimously. The measure is narrowly written to address sewer, stormwater and water-related fees and followed negotiation with the Property Rights Coalition that narrowed the scope.
Discussion vs. decision: the committee's action was to recommend the draft as a committee bill for further work in the interim; this was not final enactment into law.
